AltaGas, Vopak form new joint venture for Canadian LPG export terminal

May 10, 2023 By    

Royal Vopak and AltaGas Ltd. are partnering on a new 50/50 joint venture to further evaluate development of the Ridley Island Energy Export Facility (REEF), a large-scale liquefied petroleum gas (LPG) and bulk liquids terminal with marine infrastructure on Ridley Island, British Columbia, Canada.

Photo of Ridley Island Propane Export Terminal courtesy of AltaGas Ltd.

The Ridley Island Energy Export Facility will sit adjacent to the existing Ridley Island Propane Export Terminal, shown here, in British Columbia, Canada. (Photo: AltaGas Ltd.)

REEF will have the capability to facilitate the export of LPGs, methanol and other bulk liquids. It has been granted the key federal and provincial permits to construct storage tanks, a new dedicated jetty, and rail and other ancillary infrastructure. REEF would be developed on a 190-acre site on lands administered by the Prince Rupert Port Authority for which the joint venture has executed a long-term lease that sits adjacent to the companies’ existing Ridley Island Propane Export Terminal, which has been in operation since April 2019.

With 10 shipping days to northeast Asia, REEF will have the ability to connect Canada’s vital energy products to growing demand markets by loading very large gas carriers and other very large fuel vessels, the companies say.

“The strategic location of Prince Rupert, with the shortest shipping distances between North America and Asia, has the potential to increase the trade between Canada and the Asia Pacific region,” says Dick Richelle, chairman of the executive board and CEO of Royal Vopak.

REEF is working through front-end engineering design activities. Deliverables will include a refined capital cost estimate, a project execution plan, a construction schedule and a projected in-service date. Engineering design and other development activities are expected to be completed by late 2023, followed by a final investment decision by the joint venture.

Randy Crawford, president and CEO of AltaGas, says Canada has a structural advantage in delivering LPGs into Asia.

“AltaGas delivers more than 12 percent of Japan’s propane and 12 percent of South Korea’s LPG imports through connecting our valued upstream customers with key downstream markets in Asia,” Crawford says. “REEF fits our corporate strategy of operating long-life infrastructure assets that connect customers and markets and provide resilient and durable value for our stakeholders.”

About the Author:

Brian Richesson is the editor in chief of LP Gas Magazine. Contact him at or 216-706-3748.

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